The Commodity Futures Trading Commission (CFTC) has fined Universal Navigation Inc., operating as Uniswap Labs, $175,000 for illegal trading practices. The decentralized finance ( defi) protocol operator was found in violation of the Commodity Exchange Act (CEA) for offering leveraged retail commodity transactions without proper registration. Uniswap Labs, the company behind a popular decentralized digital asset trading protocol, was charged with unlawfully offering leveraged and margined transactions involving cryptocurrencies like ether and bitcoin. According to the CFTC, these transactions did not result in delivery within the required 28 days, making them non-compliant under the CEA. Additionally, Uniswap Labs operated without the necessary registration as a contract market. In response to the enforcement action, Uniswap Labs has agreed to pay the civil penalty and cease the unlawful activity. The CFTC acknowledged Uniswap Labs’ cooperation, resulting in a reduced fine.
CFTC Fines Uniswap Labs $175,000 for Violating Commodity Exchange Act
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